TEMPO.CO, Jakarta - The Institute for Essential Services Reform (IESR) estimated a decline in coal demand after 2030 in Indonesia, reaching 15 to 20 percent.

"IESR predicted that coal demand will reach its peak in 2030 and rapidly decline after," said Executive Director IESR Fabby Tumiwa in a webinar with the theme of "Coal Plants and Industry Sunset: Reviewing Direction and Multisector Consequences of Just Energy Transition" in Jakarta today, September 27, 2023.

The calculation is based on Presidential Regulation No. 112 of 2022 on the Acceleration of Renewable Energy Development for Power Supply. "Article 3 of the regulation provided that the government no longer allows coal power plant development except those planned prior to the provision. These are coal plants owned by the State Electricity Company," he explained.

The State Electricity Company has planned 13.6 GW of coal power plants during the 2021 to 2030 period. According to Fabby, not all of these would be realized, since some of these coal plants depend on China's funding. Meanwhile, China has stopped funding other countries' coal plant development.

Additionally, the decline in domestic coal demand is caused by the energy transition trend. The government also plans to halt the operation of coal plants entirely in Indonesia.

"The point is, after 2030, domestic coal plant consumption in Indonesia will slow down," Fabby said.

AMY HEPPY

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